Calliden plans to introduce new distribution channels and look to increase business through joint venture agency investments.

Its annual report says Calliden has moved towards a less capital-intensive managing general agency model, and forecasts improvements in the business this year.

Calliden Agency Services’ gross written premium (GWP) is expected to increase 10% to $165 million, while product diversification and the risk appetite of external underwriting insurers will bring revenue growth, CEO Nick Kirk says.

The division currently operates as an agent on behalf of insurers including Great Lakes, Ace, the NSW Government’s SICorp and Calliden Insurance.

The size and composition of the Calliden Insurance portfolio is forecast to be relatively stable, with GWP of about $95 million. Net premium will gain more than 10% on reduced proportional reinsurance following the agency business shift, the company says.

New registered builders’ warranty risks are not being added this year after adverse experience in the portfolio contributed to an increase in the claims ratio last year.